Oil Prices Tumble as Saudi Supplies Ease Disruption Fears
Global crude oil prices declined for a third consecutive day on Friday, September 18th, amid hopes that additional supplies from Saudi Arabia could ease concerns over global supply disruptions.
The price of Brent crude futures dropped 2.2 percent to $102.57 per barrel, while US West Texas Intermediate (WTI) crude prices fell 1.9 percent to $100.05 per barrel, briefly dipping below the $100 mark per barrel.
The decline in oil prices came as investors weighed a series of recent attacks between Saudi Arabia and the Iran-backed Houthi group in Yemen, alongside signs that Saudi Arabia's additional crude supplies may soon enter the global market.
Saudi Supplies Ease Market Concerns: The recent drop in oil prices mostly reflects a reduction in geopolitical risk premiums rather than fundamental changes in the oil market, according to Simon-Peter Massabni, Head of Business Development at XS.com. Geopolitical risk premiums refer to additional costs factored in by market participants to account for possible supply interruptions due to conflicts or political tensions.